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New Mexico International Fuel Tax Agreement

New Mexico International Fuel Tax Agreement: What You Need to Know

The International Fuel Tax Agreement (IFTA) is an agreement among the United States and Canadian provinces to simplify the reporting and payment of fuel taxes. This agreement applies to vehicles that are used for commercial purposes that travel across different states and provinces.

New Mexico is one of the few states in the United States that participates in the IFTA. This means that if you operate a commercial vehicle that travels through New Mexico, you must comply with the state`s fuel tax rules.

The IFTA simplifies the reporting and payment of fuel taxes across different states and provinces. Instead of having to file separate reports with each state or province, commercial carriers only need to file one report with their base jurisdiction. The base jurisdiction then allocates the fuel taxes to each state or province based on the miles traveled in each jurisdiction.

To comply with the IFTA in New Mexico, commercial carriers must obtain an IFTA license from the New Mexico Taxation and Revenue Department. They must also maintain accurate records of fuel purchases and usage to ensure accurate reporting. Failure to comply with the reporting and payment requirements can result in penalties and fines.

The New Mexico IFTA rules require commercial carriers to file quarterly tax returns with the state. These returns must report the total number of miles traveled in New Mexico and the total number of gallons of fuel consumed during the quarter. The report must also break down the number of miles traveled and gallons consumed in each jurisdiction.

New Mexico`s fuel tax rates are based on the type of fuel used, the location of purchase, and the type of vehicle. The current fuel tax rates in New Mexico are $0.21 per gallon for gasoline and $0.18 per gallon for diesel.

In conclusion, the International Fuel Tax Agreement simplifies the reporting and payment of fuel taxes for commercial carriers that operate across different states and provinces. New Mexico participates in the IFTA, and commercial carriers that travel through the state must comply with the state`s fuel tax rules. Failure to comply with these rules can result in penalties and fines.